KIB Plug Energy has unveiled its comprehensive plan to revolutionize the hydrogen value chain business. Through a meticulously disclosed management blueprint, the company’s vision entails a gradual shift from hydrogen fuel cell production to a fully-fledged hydrogen production ecosystem.
The cornerstone of this transformative plan lies in the establishment of hydrogen fuel cell production facilities. By 2025, the company envisions a colossal 100-fold increase in capacity, reaching an impressive 2025 megawatts (MW). This ambitious expansion roadmap will encompass the construction of five cutting-edge 20MW facilities. Forecasts anticipate each of these sites generating around 5 billion won in sales, coupled with a substantial operating profit of 350.73 billion won. Notably, the initial phase entails two fuel cell production projects this year, to be followed by an additional trio next year.
Beyond fuel cell prowess, KIB Plug Energy charts an ambitious trajectory into the energy commercial sphere, focusing on both commercial electric and hydrogen-powered vehicles. A pivotal strategy in swiftly capturing market share involves strategic mergers and acquisitions (M&A). The company’s blueprint outlines the delivery of hydrogen-powered electric vehicles, leveraging hydrogen sourced from its production facilities. Concurrently, KIB Plug Energy aspires to fortify its energy equipment business, augmenting sales by engaging as an MBOP (peripheral machinery and equipment) equipment supplier and EPC (Design, Procurement, and Construction) operator.
Crucially, KIB Plug Energy’s hydrogen production approach hinges on a groundbreaking heat exchange method employing high-efficiency waste plastic pellets as a raw material. The resulting hydrogen will fuel not only vehicles but also catalyze potential mergers with eco-friendly automobile enterprises in the long run.
Moreover, the company is orchestrating a foray into the burgeoning eco-friendly vehicle market, leveraging SKD (partial assembly manufacturing) or CKD (fully assembled manufacturing) techniques. This strategic maneuver opens the door to enter the city bus sector, bolstered by governmental support. As the trajectory unfolds, KIB Plug Energy’s grand vision encompasses direct city bus manufacturing and the development of hydrogen-powered buses, aiming to solidify its stance in the realm of hydrogen-special vehicles.
A senior company official underscored the financial prospects of this diversified venture, stating, “We expect that the PER (price-to-earnings ratio) multiple can be applied from 40 to 60 when we enter the eco-friendly vehicle and vehicle parts market.” This forward-looking strategy is built upon the bedrock of the company’s existing machinery and equipment sector, ensuring a seamless transition into the new horizons of industry.
Last month witnessed a pivotal transformation for KIB Plug Energy, transitioning its major shareholder from Curo Group to KIB PE. This strategic shift accompanied a change in the company’s name from Quro, signifying its expanding domain from traditional heat exchangers and chemical equipment to high-value-added future ventures. As the hydrogen economy continues its ascendancy, KIB Plug Energy’s multifaceted approach could potentially reshape the trajectory of energy evolution.